Downtown Project Stalling Over Market Fears
CENTERVILLE - There was not much good news at the latest update on the progress of Centerville's downtown redevelopment project. "It's a tough time in the real estate market right now," project manager Ron Mehl, representing the Beard Group, told the Centerville City Council in a workshop session April 23.
He was outlining the progress made on phase one of the plans for development, which was due to start this year.
Phase one includes four lots, featuring a townhome development, apartment complex, retail development and mixed-use building in the heart of Centerville.
Mehl explained that, for the most part, the Beard Group was working to reconcile ever-widening negative gaps between the projected costs of the plans and the estimated revenue from the developments.
Another problem was that banks are proving reluctant to finance for-sale development, although backing for the rental apartments part of the program appeared healthy.
"We don't have a crystal ball and we can't predict when we will come out of this," explained Mehl.
He added that he was experiencing difficulty in signing up an anchor store of about 6,000 square feet for the retail section of the downtown project, although there was interest from smaller stores.
"We need to have an anchor store in here," said Mehl. "We are getting calls from nail salons and insurance companies, but we need something a bit bigger to come on before we take it to a bank [to finance the construction].
"We are talking to a grocery store that you guys have heard of."
Kowalski's Market, Trader Joe's and CVS pharmacy were all mentioned by Mehl and council members as possible avenues to explore for the site, which sits on the intersection of Centerville Road and Main Street.
Council Member Jeff Paar said, "The only thing I'm hearing from people is that people want to know when [this project will happen] and they are totally afraid of the apartments."
The Beard Group has committed to giving regular updates to the council on the progress of the project.